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CPB budget allocation formula
| The Corporation for Public Broadcasting has limited discretion in spending the federal appropriation for public TV and radio. Federal law imposes a budget allocation formula that divides the appropriation as indicated at right. The percentages are calculated from text of the legislative provisions below. Dividing CPB funds between TV and radio had been a repeated struggle until 1981, when Congress imposed the formula proposed by Rep. Tim Wirth (D-Colo.). The 75-25 split between TV and radio was based on experience. Robben Fleming, then president of CPB, complained that the formula "emasculates" CPB, and his successors periodically have objected to the loss of discretion over spending. Outside the formula, CPB also spends Annenberg/CPB Project funds and the separate Ready to Learn appropriation from Congress and occasional special appropriations for satellite and other technical system upgrades. |  |
The allocation formula as described officially in the Public Broadcasting Act
The following provisions are contained in this portion of Section 396 of federal communications law, which establishes CPB. Source: federal law as of Jan. 26, 1998, posted on the web site of the Cornell Law School Legal Information Institute. Below is a portion of U.S. Code 47, Chapter 5, Part IV, Subpart D, Section 396.
- (3)
- (A)
- (i) The Corporation shall establish an annual budget for use in allocating amounts from the Fund. Of the amounts appropriated into the Fund available for allocation for any fiscal year -
- (I) $10,200,000 shall be available for the administrative
expenses of the Corporation for fiscal year 1989, and for each succeeding
fiscal year the amount which shall be available for such administrative
expenses shall be the sum of the amount made available to the Corporation
under this subclause for such expenses in the preceding fiscal year
plus the greater of 4 percent of such amount or a percentage of such
amount equal to the percentage change in the Consumer Price Index, except
that none of the amounts allocated under subclauses (II), (III), and
CPB admin costs
- (IV) and clause (v) shall be used for any administrative
expenses of the Corporation and not more than
5 percent of all the amounts appropriated into the Fund available
for allocation for any fiscal year shall be available for such administrative
expenses;
System support costs
- (II) 6 percent
of such amounts shall be available for expenses incurred by the Corporation
for capital costs relating to telecommunications satellites, the payment
of programming royalties and other fees, the costs of interconnection
facilities and operations (as provided in clause (iv)(I)), and grants
which
the Corporation may make for assistance to stations that broadcast programs in languages other than English or for assistance in the provision of affordable training programs for
employees at public broadcast stations, and if the available funding level permits, for projects and activities that will enhance public broadcasting;Split between TV and radio
- (A)
- (ii) Of the amounts allocated under clause (i)(III) for
any fiscal year -
- (I) 75 percent of such amounts shall be available for distribution among the licensees and permittees of public television stations pursuant to paragraph (6)(B); and
- (II) 25 percent
of such amounts shall be available for distribution under subparagraph
(B)(i), and in accordance with any plan implemented under paragraph
(6)(A), for national public television programming.
Split between station and CPB discretion in radio - (iii) Of the amounts allocated under clause
(i)(IV) for any fiscal year -
- (I) 70 percent of such amounts shall be available for distribution among the licensees and permittees of public radio stations pursuant to paragraph (6)(B);
- (II) 7 percent of such amounts shall be available for distribution under subparagraph (B)(i) for public radio programming; and
- (III) 23 percent of such amounts shall be available for distribution among the licensees and permittees of public radio stations pursuant to paragraph (6)(B), solely to be used for acquiring or producing programming that is to be distributed nationally and is designed to serve the needs of a national audience.
- (iv)
- (I) From the amount provided pursuant to clause (i)(II), the Corporation shall defray an amount equal to 50 percent of the total costs of interconnection facilities and operations to facilitate the availability of public television and radio programs among public broadcast stations.
- (II) Of the amounts received as the result of any contract, lease agreement, or any other arrangement under which the Corporation directly or indirectly makes available interconnection facilities, 50 percent of such amounts shall be distributed to the licensees and permittees of public television stations and public radio stations. The Corporation shall not have any authority to establish any requirements, guidelines, or limitations with respect to the use of such amounts by such licensees and permittees.
- (v) Of the interest on the amounts appropriated
into the Fund which is available for allocation for any fiscal year
-
- (I) 75 percent shall be available for distribution for the purposes referred to in clause (ii)(II); and
- (II) 25 percent shall be available for distribution for the purposes referred to in clause (iii)(II) and (III).
- (B)
- (i) The Corporation shall utilize the funds allocated pursuant to subparagraph (A)(ii)(II) and subparagraph (A)(iii)(II) to make grants for production of public television or radio programs by independent producers and production entities and public telecommunications entities, producers of national children's educational programming, and producers of programs addressing the needs and interests of minorities, and for acquisition of such programs by public telecommunications entities. The Corporation may make grants to public telecommunications entities and producers for the production of programs in languages other than English. Of the funds utilized pursuant to this clause, a substantial amount shall be distributed to independent producers and production entities, producers of national children's educational programming, and producers of programming addressing the needs and interests of minorities for the production of programs.
- (ii) All funds available for distribution under clause (i) shall be distributed to entities outside the Corporation and shall not be used for the general administrative costs of the Corporation, the salaries or related expenses of Corporation personnel and members of the Board, or for expenses of consultants and advisers to the Corporation.
- (iii)
- (I) For fiscal year 1990 and succeeding fiscal years, the Corporation shall, in carrying out its obligations under clause (i) with respect to public television programming, provide adequate funds for an independent production service.
- (II) Such independent production service shall be separate from the Corporation and shall be incorporated under the laws of the District of Columbia for the purpose of contracting with the Corporation for the expenditure of funds for the production of public television programs by independent producers and independent production entities.
- (III) The Corporation shall work with organizations or associations of independent producers or independent production entities to develop a plan and budget for the operation of such service that is acceptable to the Corporation.
- (IV) The Corporation shall ensure that the funds provided to such independent production service shall be used exclusively in pursuit of the Corporation's obligation to expand the diversity and innovativeness of programming available to public broadcasting.
- (V) The Corporation shall report annually to Congress regarding the activities and expenditures of the independent production service, including carriage and viewing information for programs produced or acquired with funds provided pursuant to subclause (I). At the end of fiscal years 1992, 1993, 1994, and 1995, the Corporation shall submit a report to Congress evaluating the performance of the independent production service in light of its mission to expand the diversity and innovativeness of programming available to public broadcasting.
- (iii) Of the amounts allocated under clause
(i)(IV) for any fiscal year -
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